Demand must include rights summary - LTA 1985 s. 21B
Demand for service charge must be accompanied by a summary of tenant's rights and obligations. Tenant may withhold payment if not. LTA 1985 s. 21B.
A demand for the payment of a service charge must be accompanied by a summary of the rights and obligations of tenants of dwellings in relation to service charges. The Secretary of State may make regulations prescribing requirements as to the form and content of such summaries of rights and obligations. A tenant may withhold payment of a service charge which has been demanded from him if subsection (1) is not complied with in relation to the demand. Where a tenant withholds a service charge under this section, any provisions of the lease relating to non-payment or late payment of service charges do not have effect in relation to the period for which he so withholds it. Regulations under subsection (2) may make different provision for different purposes. Regulations under subsection (2) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
When a landlord demands payment of a service charge from a tenant, the demand must include a summary of the tenant's rights and obligations relating to service charges. This summary can be in a form prescribed by government regulations.
If the landlord does not include this summary, the tenant can withhold the payment. While the tenant is withholding, any clause in the lease that would penalise late or non-payment (such as interest or forfeiture) does not apply.
The Secretary of State can make regulations about the form and content of the summary, and these regulations can vary for different types of tenancies or charges.
When it applies
- A landlord sends a service charge demand without any attached summary. The tenant withholds payment.
- A tenant receives a demand with a summary that is incomplete or not in the prescribed form. The tenant withholds payment.
- A tenant withholds payment and the landlord tries to charge late fees. The tenant points to this section to stop the fees.
- The Secretary of State issues new regulations about the form of the summary. The landlord must update the summary to comply.
What this section does not say
- This provision does not cover the amount of service charge that can be demanded. That is covered by sections 20 and 20B.
- It does not cover the tenant's right to request information about service charges. That is covered by section 21.
- It does not cover the tenant's right to inspect accounts. That is covered by section 22.
- It does not apply to tenants of certain public authorities. See section 26.
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This page reproduces the text of LTA 1985 s. 21B in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.